CBRE, JLL post double-digit growth in earnings in 2015

Strong revenue and earnings growth in the last quarter of 2015 helped both of the world's leading agents CBRE and JLL to complete a record year in terms of business performance.

Los Angeles-based CBRE reported a 19% increase in adjusted earnings per share to $0.81 for Q4 2015. Revenue for the fourth quarter totalled $3.7 bn, an increase of 33% on the same period a year earlier. This included $745 mln of revenue from the acquired Global Workplace Solutions business.

In the EMEA region, revenue improved 60% to $1.2 bn over the three-month period.

For the full year, CBRE posted adjusted net profit 23% higher at $689.2 mln on revenue up 20% at $10.9 bn (26% local currency). Fee revenue increased 14% over the full year (or 20% local currency) to $7.7 bn. Excluding the Global Workplace Solutions business, which CBRE purchased on 1 September 2015, revenue and fee revenue both increased 15% in local currency.

Commenting on CBRE’s 2015 EMEA financial results, regional CEO Martin Samworth said: '2015 was another tremendous year for CBRE in EMEA with the UK, Ireland, Germany and Spain all performing particularly strongly. The results build on an exceptional period of growth over the last three years, with revenue having more than doubled since 2013.'

CBRE expects double-digit growth again in 2016, supported by continued gains in market share, and expects to achieve adjusted earnings-per-share in the range of $2.27 to $2.37 for 2016. This equates to a growth rate of 13% at the mid-point of the guidance.

'While we are mindful of concerns about China’s slowing growth and the effect of lower oil prices, fundamentals in our sector remain on solid footing,' said Bob Sulentic, the company’s president and chief executive officer. 'We are positioned for another strong year in 2016, but are maintaining flexibility in case the economy weakens.'

JLL also books double-digit earnings and revenue growth
JLL likewise booked double-digit earnings and revenue growth during the final quarter and full year. The Chicago-based company saw adjusted earnings per share rise 14% to $4.53 in the fourth quarter, while gross revenue was up 15% to $1.9 bn in the same period.

Over the full year, adjusted net income rose 16% to $455 mln on gross revenue up 18% at $6 bn. Fee revenue rose 17% to $5.2 bn.

'An excellent fourth quarter completed another year of record revenue and profit,' commented Colin Dyer, President and CEO of JLL. 'Growth will continue in 2016, driven by the caliber of our people, targeted investments and strategic acquisitions, all combining to expand our services and build the long-term value of our company,' he added.

EMEA's performance during the year was significantly higher in local currencies than in US dollars due to the strength of the US dollar against European currencies, particularly the euro. Fee revenue for the year came to $1.4 bn, an increase of 20% from 2014, mainly driven by business in Germany, France and the UK.